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QMNM.ob Down 30% in Early Trading
 Quest Minerals & Mining Corp (QMNM.ob) shares continue to drop in early trading and are now down nearly 30% today to $.0017 on volume of more than 15 million shares.
Share price has been depreciating rapidly here as of late and could still go lower with no production updates from the company.
The stock is undoubtedly being adversely impacted by the uncertainty of Quest's wholly-owned subsidiary, Gwenco Inc's ongoing bankruptcy proceeding and a lack of a corporate update regarding the company increasing coal production to meet previously outlined goals and/or hitting the main seam at its Pond Creek, KY mine.
In regards to the BK hearing, from what I've been told, the company has received a verbal agreement from creditors that previously objection the most recent reorganization plan. I will check with management again on this early this week, but I'm pretty sure that this is the case.
Also, I will inquire about progress at the mine and the possibility of a tonnage report. Check back later today or early tomorrow for an update.
Labels: Gwenco, OTCBB: QMNM, QMNM, QMNM.ob, Quest, Quest and Bankruptcy, Quest Minerals and Mining
7 Comments:
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Also YOU should not report too optimistic about Quest and the progress and production figures. This might cause more damage to the stock than reporting true figures about what 'have been done'.
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My apologies. However, I honestly do not feel that my reporting on Quest was in fact "too optimistic" in this regard.
I do speak with the CEO and he relayed to me the fact that a verbal agreement had in fact been reached with creditors that recently opposed the Gwenco plan for reorganization.
Also, I did indicate that share price was indeed suffering from a lack of production updates and that I would make an effort to contact the company to see if any updates may be in the pipeline.
For fairness sake, in the future, I will speak only about topics outlined in Quest's press releases and will neglect to provide insight into my conversations with management. That is, of course if you agree to use decent grammar.
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I agree to both points, PR's and grammar. And will try to improve, but US english is not my native language.
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Fair enough. I appreciate your interest and willingness to communicate via our blog. Let's keep the communication as constructive as possible going forward.
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In the past, your commentary has been informative. I appreciate it as it appears to be balanced and - it appears - backed with some experience. As such, I would rather have insight into your comments with regards to your conversations with Quest management. There's precious little other news out there at this time, so any news is better than none, particularily if its coming from Quest management from, hopefully, a reliable source: you.
BTW - Thanks, appreciate your effort around all this.
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Thank you,nyckosmic.I'm really excited that we are seeing more and more readers contributing their thoughts to the blog in a polite and constructive manner.
I've been playing phone tag with Eugene today and will hopefully get in touch with him shortly here.
I do try to provide balanced reporting on Quest and other small cap companies, regardless of their position in our portfolio. I also try to help shed some light on topics that investors want to know about and can't seem to find answers too.
That's why I love this blog.
Since I'm usually in pretty frequent contact with the CEOs of companies I cover and typically conduct a ton of DD on each, I am able to provide some valuable insight into what is transpiring at company's like Quest.
At this point with Quest, however, I need to speak to the chief to get the 411 here. For now, what I really want to know is:
#1 What's up with the BK proceeding? I'd love to see a PR outlining the company's next steps with mention that verbal agreement has in fact been reached with previously opposing creditors.
Rather than having people scouring the web trying to find GWENCO court documents - the origins of some tossed around were suspect at best, and some seemed reliable - why not make it all publicly available on the corporate homepage?
In my opinion, more visibility fosters increased credibility for a public company.
#2 What's going on with production?
I think what the investment community needs, other than tangible tonnage report updates are weekly or bi-weekly mine updates. Even something as simple as "we mined coal from x to z with no down time or equipment failure, would suffice in my opinion.
Even if production is halting for a day here and there for whatever reason, why not let us know how things are progressing? We have people on the message boards claiming to be speaking to workers at the mine, so, why not make that info public for the world to see and get a report for whitestar or bobby blackburn every so often?
#3 What's up with the Main Coal Seam?
I'd also know when they plan on hitting the main seam in the Pond Creek Mine that was close to being hit a few weeks back. I perceive that as being a key point in the company's operational lifespan
and if we can all gain a deeper understanding of what is transpiring here and it is positive, that could have positive implications for the stock's health going forward.
I'd just hate to see a situation in which QMNM sells off on high volume for a few days as it did from 9/25 to 9/29 and some investors happen to be "in the know" and selling off because there in fact has been an equipment problem that resulted in a product halt or slowdown. I'm not saying that's what happened because this stock surely trades nuttier than a squirrel, but my long winded point here is that well all need to be kept in the loop a bit better by the company.
I'll be pushing for this going forward and will be happy to help out reporting on developments if the company will allow me to do so.
Check back soon for updates on my conversation with Gene. And thanks again to everybody that is making this blog a great place to go for hard to find info on QMNM.
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In support of your questions to Qwest, and possibly to give you more ammo for increased reporting:
#1 What's up with the BK proceeding?
I found out about the bankruptcy reviewing Qwest's latest (Aug 2008) 10-Q filing (quarterly review) in the footnotes of recent developments, had no idea otherwise. Although I doubt we'll see any announcement by Qwest in any news release regarding any agreement while a case is in court, if you can get an update or confirmation on your previous discussion, that would be valuable.
This, by the way, is issue number one. Without GWenco getting out of bankruptcy, no more Qwest.
#2 What's going on with production?
Nothing spooks investors more than silence. A few bad days, or delays due to equipment malfunction, etc. that is:
i. Outlined in a news release,
ii. Includes the current and future impact to production, and
iii. Positions a get well plan
goes a long way to build confidence in management, the viability of the venture and hence the value of the stock.
#3 What's up with the Main Coal Seam?
See my answer for #2 above. Qwest has made a big play on the Main Coal Seam as a major step to sustainable success. It's imperative investors know and understand the progress or lack thereof in reaching it. If there is a delay, what's the new ETA? Also, give us a hint as to production quality and the progress to production profitability.
Other
Another note, it was interesting to find in a Sept 10th 2008 filing, Qwest’s amended their articles to increase their outstanding common stock issue from 975,000,000 to 2,500,000,000.
Eugene’s Stock Options
Another side-note, Mr. Chiaramonte (Eugene), is interested in getting the price up too… many of his options are underwater right now:
Grant Value/share Exercisable Quantity Expires
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Series C Preferred Stock $0.0242 01/17/2007 72,222,222 (Convertible)
Stock Option $0.024 07/03/2008 25,000,000 07/03/2018
Stock Option $0.0044 09/24/2008 25,000,000 09/24/2018
Note, the last Option grant was 9/24, quite a time after the Sept 11 date that Qwest last reported through a news release. It would appear Eugene is optimistic…
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Quest Minerals & Mining Corp (QMNM.ob) shares continue to drop in early trading and are now down nearly 30% today to $.0017 on volume of more than 15 million shares.
